Thursday, December 26, 2019

Case Study of PG (Marketing Issues) - 913 Words

| Case 5: Pamp;G | | ------------------------------------------------- Company Background Porter and Gamble (Pamp;G), founded in 1837, is one of the biggest consumer goods company over the world. Pamp;G sells shampoos, baby care products, medicine and food etc. It not only diversified the product range but also the product width. Therefore, Pamp;G has several brands under one single category but aimed with different customer segments. Pamp;G is also famous for its innovative and customer-oriented approaches. For example, it designed one kind of shampoo which is suitable for Japanese. With the competitive advantages above, Pamp;G was developing with an appealing growth rate and became one of the top 500 companies†¦show more content†¦In my opinion, as the purchasing power of the bottom of pyramid was low, what they need was purely the basic functions of the products. Therefore, the company must learn the new target customers very well. The company hired many local employees who definitely understand the environment and living styles. Moreover, such strategies could make its promotion going deeper in the markets. Thought the number of audiences of every road show is limited, those who actual attended would get free samples. Then, they would tell their friends or relativities about how useful the products are. The effect of word-of-mouth would occur. ------------------------------------------------- Problems of the marketing strategies Everything has its down side. The marketing strategies Pamp;G used were largely required time and resources. Such high investment was at risk. On the other hand, since Pamp;G had a well-known image of premium class targeted, entering the low-end markets may lead confusion to its existing customers. In other words, there may lead some losses on original area of business. ------------------------------------------------- Recommendations Although in the rural area, residents earned just around $2 a day. Pamp;G should not continue on the same strategy to them. The economy of China is growing with a high rate. Therefore, people living in countryside are expected to earn much more than current situation. The purchasing powerShow MoreRelatedP G Korea - Detergent Division Essay1158 Words   |  5 PagesPG Korea Case Study The main issue of the PG Korea case is centered around the question of market share. PG and Unilever are the two major market shareholders in the Korean detergent industry holding 80-85% of the total market share. The remaining 15-20% of the market is held by low-priced local Korean brands. There are no new markets either company can tap for further market share since most Korean households already use laundry detergent, making the market saturated. 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